To determine which group influenced the price of the product in the given scenario, let's analyze the events described:
1. Initially, a cookie baker set her prices at [tex]$2 per cookie and $[/tex]10 for a half dozen and sold 6 dozen cookies.
2. Two weeks later, a new baker arrived and set his prices at [tex]$1.75 per cookie and $[/tex]10 for a half dozen, selling 4 dozen cookies.
3. Subsequently, the first baker responded by lowering her prices to [tex]$1.50 per cookie and $[/tex]8 for a half dozen and sold 8 dozen cookies.
From this:
- The first and second bakers adjusted their prices, likely due to the presence of competition.
- The price changes reflect a competitive environment where sellers are attempting to attract more customers by offering lower prices.
Key Insight:
- The sellers (the bakers) specifically adjusted their prices in response to each other's pricing strategies. This indicates that their behavior influenced the price adjustments.
Conclusion:
- The price of the cookies was determined by the competition among the sellers.
Thus, the group that determined the price of the product in this scenario was the sellers.